digital marketing , introduction of digital marketing
Presentation1
1. Focus on Variable Costs
The ABC approach is "an attempt to penetrate the blob of 'fixed' overhead costs and show that most if not
all of them are really variable." While covering all resources, variable and fixed, ABC has been searching for
"variability and causality throughout the organization. the lean production paradigm,
Which includes programs such as just-in-time (JIT), total quality management (TQM), total customer
satisfaction, employee empowerment, and continuous process improvement, among others, are however
skeptical about ABC's power.
Just-in-time (JIT); JIT System Attempt To Minimize Both Carrying And Stock Out Cost.
Total Quality Management (TQM): TQM Is an enhancement to the traditional way of doing business. It is a
proven technique to guarantee survival in world class competition .Only by changing the action of
management will the culture and action of an entire organization be transferred.
Delayed Actions" and Taking Actions
1.The benefits of using ABC in product decisions and pricing products and services and in dealing with
2.profit priorities of various organizations. Analyzed the delays as
3.the organizations' inadequate preparation for radical changes in thinking and decision making called for by
the ABC project.
4.The delayed actions were caused by the lack of an explicit game plan to make the transition from ABC
analysis to line manager's action a smooth reality.
5.In This report ,when using the exiting model of Daihatsu does not make any price changes in the
manufacturing stage. Even such case of a sales tax change, would not change prices. Prices are changed only
to reflect fluctuations in the foreign exchange rate and for the changes in product options where as change
in price in Japan.
2. Would Any ABC-Type Activity Cost Information be Needed
ABC draws its concept from the relationship between an organizational demand for business
transactions and incurred overhead costs. Benefit from a system such as an ABC system can be
approached from the following two aspects:
The answer may lie in what advocates of JIT/TQM and process improvement pro grams say, "Focus on
reducing variation and lead time, the costs will take care of themselves" The success of that company in
reducing costs and improving quality without a system like ABC is also reinforced by the fact that its
fixed cost ratio is so low.
The "big blob of fixed costs" which cannot easily be attributed to a specific process or product, and
which can usually give companies the reason for consideration and adoption of ABC.
Cost and Quality
When the final target costs are not achieved, and the investigation reveals that they are
unachievable, some decisions that are made might look like a cost-quality tradeoff. 7 An
intense study on cost and quality is performed in the product development stage through
target costing.
If manufacturing personnel improve product quality during a certain period by adding
some more devices or using higher quality materials--which would reduce the incidence
of customer complaints--the variable costs of manufacturing would increase. In such a
case, the accounting office allows the plant to increase the target cost, which means that the
target amount of kaizen costing is reduced. This would enable the plant to achieve the target
cost without facing any negative effect from quality improvement.